Tax Planning Tips for the 2013 Filing Season

Tax Planning Tips for the 2013 Filing Season

The IRS has released some tax tips on how individual taxpayers can begin planning for the 2013 filing season. Being organized and planning ahead can save time and money during the 2013 filing season, the IRS noted.

Adjust withholding. The IRS recommended that taxpayers use the agency’s withholding calculator on its website (www.irs,gov) to review their withholding. The IRS reminded taxpayers that they may want to adjust their withholding if they anticipate a change in filing status, a change in the number of dependents, or a change in income before they file their 2012 returns in 2013.

Review paychecks and pre-tax contributions. Taxpayers should double check any pre-tax contributions, deductions, and other adjustments to paychecks, the IRS suggested.

Shop for a tax professional early on. The IRS recommended individuals choose a tax professional wisely. Taxpayers are ultimately responsible for the accuracy of their return regardless of who prepares the return, the IRS cautioned.

American Opportunity Tax Credit (AOTC). The IRS reminded taxpayers that the American Opportunity Tax Credit (AOTC) (the enhanced HOPE education credit) is scheduled under current law to sunset after 2012. The AOTC can be claimed for qualified educational expenses for the first four years of post-secondary education.

Organize tax records. Taxpayers should keep their 2011 tax return and other tax records such as mileage logs and charity receipts in one, central location, the IRS recommended.

Tax Tip 2012-07,, TRC FILEIND: 15,250.